You can however have the payment added to sellers DTI and then offset it with a rental lease agreement that the buyer can provide them and their lender can order a rent schedule completed by appraiser.

Ok thanks, do you have any idea if you need 2 years of work history for the appraisal loan of the house after you rehab it?

I have found banks that will use the appraised long term rent on the STR property to offset your PITI from that property.

I'd build at least 3 units. the DSCR loans we underwrite get 1.6 debt coverage and because we build under 4 units they have so many exit strategies depending on which appraisal method goes for more. 

Well maybe yes or no, however if a certified appraiser licensed by the state deems the price, then it is worth that.

We can also try to cash out refinance (I do think it would appraise for $260,000) and pull out $208,000.

It's going to cost about $550k to build and it has already appraised well over $800k.

But really the appraiser is making that call.

Appraised value of $485k when completed.

Is this worth challenging or getting a second appraisal?